The department secretary said he was impressed by the conservation measures, such as the agreement that allows water users to obtain future credit for conserving water and leaving it in Lake Mead. "It also sets up a framework to allow cities to contract with willing farmers to temporarily fallow fields in dry years while respecting the basin's agricultural heritage," he said.

Perhaps most important, Kempthorne added, the agreement among the seven states has a "key provision" that future controversies surrounding Colorado River resources will be handled among the states through consultation and negotiation, before any states resort to litigation.

He added that the department is working with Mexico to resolve issues concerning Colorado River water that crosses into Mexico. Under the compact, the republic to the south is guaranteed water from the system.

Ostler said that without the agreement, water users faced a high possibility that lawsuits would involve any or all of the compact states. The resulting "legal conflict" could drag on for years, and the fight would not only be costly but would tie up development plans.

Under the new arrangement, operations of Lake Mead and Lake Powell will be coordinated so that both should rise and fall together to an extent, "while still preserving the Upper Basin's allotment of water."

Ostler characterized the agreement as giving to each state and taking a bit from each state. The most important part is that it heads off "this legal conflict that was looming."

The water agreement protects the Upper Basin also, he said. For example, if Lake Mead is high and Lake Powell low, Powell could reduce its releases. "In the past, the releases would just be set and it would happen," he said.

Ostler thinks the waters of the United States would not suffer environmental damage because of the new operations. He added, "I think the next step ... would be to develop plans with the government of Mexico" for a new agreement there.

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E-mail: bau@desnews.com